he elasticity from point A to point B seems different from the elasticity from point B to point A. For example, consider these numbers: Pt A: price =$4, quantity=120 Pt B: price=$6, quantity=80 Going from point A to point B, the price rises by 50 %percent and the quantity falls by 33% percent, indicating that the price elasticity of demand is 33/50 , or 0.66. Going from point B to point A, the price falls by 33% percent and the quantity rises by 50% percent, indicating that the price elasticity of demand is 50/33 , or 1.5. My questions are who do you get the 50% increase, 33% decrease, etc?
he elasticity from point A to point B seems different from the elasticity from point B to point A. For example, consider these numbers: Pt A: price =$4, quantity=120 Pt B: price=$6, quantity=80 Going from point A to point B, the price rises by 50 %percent and the quantity falls by 33% percent, indicating that the price elasticity of demand is 33/50 , or 0.66. Going from point B to point A, the price falls by 33% percent and the quantity rises by 50% percent, indicating that the price elasticity of demand is 50/33 , or 1.5. My questions are who do you get the 50% increase, 33% decrease, etc?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The elasticity from point A to point B seems different from the elasticity from point B to point A. For example, consider these numbers:
Pt A: price =$4, quantity=120
Pt B: price=$6, quantity=80
Going from point A to point B, the price rises by 50 %percent and the quantity falls by 33% percent, indicating that the
My questions are who do you get the 50% increase, 33% decrease, etc?
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